Showing posts with label Covid-19. Show all posts
Showing posts with label Covid-19. Show all posts

Friday, May 1, 2020

How the Coronavirus is Impacting the Gold Price Forecast

COVID-19 or the Coronavirus is having a surreal impact on this world in many ways, including the economies of many countries. The following will help you understand how it's affecting the gold and the price forecast for this precious metal.

Demand is High

One thing that is affecting the gold price forecast at the moment is the demand for gold. The uncertainty in several world economies is making people fear that their monetary gains will not maintain their value.

When you are worried about your currency, you turn to gold. This precious metal is valued no matter what, which is the reason the demand is so high at the moment. Currently, retail gold premiums have spiked about 11 percentage points for one-ounce coins or bars.

Crumbling Economies

The reality is that several economies have plummeted, and this fact is not only driving people to gold but is also spiking gold prices. The more currencies drop, the more a company or person can make when they sell the gold to someone else.

What is worse is that there is no cure for COVID-19, which means this pandemic is pretty much unstoppable. The best thing countries can do is slow it down and monitor it, but life cannot go back to normal just yet. Folks who are interested in gold need to pay attention to countries like Taiwan and South Korea that seem to be handling COVID-19 better than other developed countries.

Shortage is Happening

Amid COVID-19 mining of gold, refineries have become non-essential in many places around the world, like Mexico and Switzerland. It makes sense that governments want to do their best to stop the spread and protect their populations, so making a difficult choice like this one is only right.

This is a new reality people who are interested in gold have to cope with. With less gold available, the ability to purchase this metal might get a little more difficult. No one knows when production could get started again, and that could put pressure on near-term gold inventories. It may seem like a good thing for those who have gold, but people who don't and want to make a good decision for their futures should be able to buy some as well.

Potential Hoarding

Another possibility that may impact gold prices is hoarding. As mentioned earlier, mining is slowing down, and that shortage scares some gold owners as well. Some people might avoid trading until they know what is happening with this pandemic, which makes sense.

This will only create more pressure and could help the price of gold rise. Some people might keep their gold because they want to be able to say their monetary future is secure. You should hold on to this precious metal, but that doesn't mean you shouldn't trade it at all; you can trade when you see some stability.

Market Growth

The likelihood that this pandemic might cause the gold market to grow is very high. People are rushing to gold now, but there's still a lot of people who haven't purchased gold just yet. Furthermore, the uncertainty that this pandemic has created on several economies around the world is becoming apparent.

That level of uncertainty doesn't just go away. Worry can linger for some time, and this fact may make the gold market grow even more after this pandemic is over or a little more controlled. People are not going to trust their economies too quickly. A lot of people want to keep some gold because they've seen what could happen. People who weren't able to invest in gold during the pandemic might choose to do so to shield themselves from the next financial crisis. This could change the gold market and gold prices for a long time.

These are some ways COVID-19 is affecting gold prices and how it may continue to affect prices for a long time. If you own gold or want to buy gold, right now is the time to pay attention to the gold market, and all news linked to the market because everything is changing rapidly. Increase your knowledge so that you can make wise choices.

Wednesday, April 1, 2020

5 Financial Tips for Airbnb Hosts During the Covid-19 Outbreak

Through the news of industries that have been affected by the COVID-19 outbreak, one that has been slightly ignored is the world of Airbnb. There were 650,000 global hosts in 2019. There's a good chance all of them have been affected one way or another. To stem the loss of income, here are five financial tips for Airbnb hosts during the COVID-19 Outbreak.

1. Halt Design Improvements

Though big-box stores are promoting huge sales and low credit interest rates to stabilize their profits, this is not a time to invest in a huge renovation project. In other words, tearing down walls or building a new room from scratch. There are two reasons for this.

First, hosts won't find a contractor. If they do, there's a good chance they'll charge top dollar to risk their health to start a project. 

Second, if hosts take on improvements themselves and get seriously injured, then they can end up going to the hospital. Though it may seem selfish, beds in those medical facilities should be saved for those infected with the virus.

2. Don't Exhaust Savings Accounts

Connected to the first tip, hosts can't exhaust their savings accounts. They need to utilize what they have gotten from patrons to pay the mortgage, rent, and necessary bills. Any extra must be put aside in case the crisis goes longer than predicted. No need for hosts to jump online and spend their earnings on additional decorations.

In reality, Airbnb hosts should have at least six months of emergency savings available. In addition, they should be charging enough to have their expenses paid. That's how to make money with Airbnb.

3. Invest in Online Programs to Enhance Hosting

The one thing to do with the money previously earned from Airbnb guests is to invest in online programs about hosting. Companies like Bnbformula offer these learning sessions to help others become as successful as they have.

Should the number of guests be lower during the COVID-19 outbreak, it is a prime opportunity for Airbnb hosts to gain a better understanding of their industry. With the available time, they can absorb the material offered instead of rushing through it. 

In turn, they'll retain knowledge that can be utilized once the travel and business markets pick up. Overall, the return on investment in one of these online programs may be greater than the initial cost.

4. Refinance Your Mortgage

With interest rates at zero percent due to the COVID-19 outbreak, there is no better time for Airbnb hosts to refinance their mortgages. By taking measures to accomplish this task, they'll be able to lower their monthly payments. If they do this while maintaining their regular guest fees, the hosts can increase their profits. Thus, they will stay ahead of the curve should another issue emerge.

Granted, some Airbnb hosts might be afraid to head to their bank to fill out forms. Luckily, many financial institutions allow homeowners to obtain refinancing estimates and complete the process online. All that's required is the necessary paperwork. That can be sent to the bank via secure document scans and uploads.

5. Look for Other Airbnb Properties

The COVID-19 outbreak hasn't shut down all businesses across the globe. Airbnb hosts still have plenty of tools at their disposal to search for other property investments in their area. This is the right time to review available locations. When the economy recovers, there's an excellent chance people cooped up in their homes for months will want to travel.

Therefore, hosts should consider investments not only near their current property but also those near tourist attractions. For instance, places in the mountains or near the beach that will not take a huge investment to freshen up. Even if hosts live in a shelter-in-place area, they can still travel to the other property for minor updates. As a result, the residences will be ready for use when the restrictions are lifted.

Though the circumstances are serious, there are opportunities for investment and financial security for Airbnb hosts. Yes, during the moments of nothingness there will be urges for these hosts to buy on impulse. If they can push those back and maintain their existing finances, the results for them will be more successful than they were prior to the COVID-19 crisis.

Join 1000's of People Following 50 Plus Finance
Real Time Web Analytics